Available online at
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pp. 395-420, Oct./Dec. 2012
Human Resources Management Policies and Practices Scale
(HRMPPS): Exploratory and Confirmatory Factor Analysis
Gisela Demo *
E-mail address: [email protected]
UCLA Anderson School of Management - University of California
Los Angeles, USA.
Elaine Rabelo Neiva
E-mail address: [email protected]
Universidade de Brasília - UnB
Brasília, DF, Brazil.
Iara Nunes
E-mail address: [email protected]
Universidade de Brasília - UnB
Brasília, DF, Brazil.
Kesia Rozzett
E-mail address: [email protected]
Universidade de Brasília - UnB
Brasília, DF, Brazil.
* Corresponding author: Gisela Demo
UnB - Departamento de Administração, Campus Universitário Darcy Ribeiro, ICC Ala Norte, Bloco B - 1°
Andar, Sala 576, Brasília, DF, 70910-900, Brazil.
G. Demo, E. R. Neiva, I. Nunes, K. Rozzett
396
Abstract
Given the strategic relevance of Human Resources Management (HRM) in organizations and the lack of
scientific instruments to measure employees’ perceptions about policies and practices of HRM, this study aimed
to validate the Human Resources Management Policies and Practices Scale (HRMPPS) through exploratory and
confirmatory factor analysis using the maximum likelihood method. The study has a quantitative design, but also
included qualitative analysis required for the development of a scale. Employees from various organizations
composed a sample of 632 people. Scale reliability was assessed by Cronbach’s alpha and Jöreskog’s rho. A sixfactor model was generated showing high-reliability and good fit. Construct validity was provided through
convergent and discriminant analyses. The factors were consistent with the literature review and explained about
58% of the construct’s total variance. This study contributes to the scientific production in the area of Human
Resources Management since HRMPPS can be used not only in relational studies but also as an evaluation
instrument by managers who wish to improve their employees’ well-being as well as organizational outcomes.
Key words: human resources policies; exploratory factor analysis; confirmatory factor analysis; structural
equation modeling.
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Introduction
Given the strategic relevance of Human Resources Management (HRM) in organizations and
the lack of scientific instruments to measure employees’ perceptions about policies and practices of
HRM, the objective of this study is to develop and validate a Human Resource Management Policies
and Practices Scale, called HRMPPS.
According to Huselid (1995), work on the measurement of HRM policies and practices is
extremely limited and this is still true today. Besides some indexes of HRM practices identified by
advocates of the high commitment approach (Guest, 1998; Pfeffer, 2005), the only scales found in the
literature were the High-Performance Work Practices developed and validated by Huselid (1995), with
13 items and a .67 Cronbach’s alpha, and the Perception of Personnel Management Policies Scale
(PPMPS), developed and validated by Demo (2008), with 19 items distributed across 4 factors and
presenting Cronbach’s alpha above .70.
The PPMPS includes only four HRM policies: involvement; training, development and
education; work conditions; and compensation and rewards. Considering the shortage of scientific
validated scales to measure employee’s perceptions about HRM policies, the PPMPS is a good option
to be used so far (e.g. Rubino, Demo, & Traldi, 2011). However comprehensive instruments with
higher reliability for measuring HRM policies and practices are demanded.
Thereafter, this paper attempted to answer the following question: is it possible to develop and
validate a comprehensive and highly-reliable scale, validated through both exploratory and
confirmatory factor analysis?
The HRMPPS presented here sought to improve the completeness and the scope of the previous
scales validated in the literature by adding policies for recruitment and selection, competency-based
performance appraisal, also often cited by classic authors of the area, such as Bohlander and Snell
(2009), Dessler (2002), Guest (1987), Sisson (1994) and Storey (1995).
Furthermore, if the HRMPPS presents good psychometric parameters, remaining stable in other
samples, it would be a reliable and more comprehensive instrument than the existing ones for use in
relational studies in the Human Resources, Management and Organizations fields. Additionally, it can
be used in managerial practice as well, as a diagnosis to improve employee’s well-being at work and
optimize organizational results.
First, a literature review is presented about human resources management, its strategic role in
organizations, and human resources management policies, including their constitutive definitions. The
methods used are then described, detailing the procedures to develop the scale, the exploratory
validation, the validation in a different sample in order to test the scale generalizability and the
confirmatory factor validation through structural equation modeling. Construct validity is provided
through convergent and discriminant analysis. Finally, the results are presented and discussed and
conclusions are made, focusing on the study contributions and proposal of a research agenda.
Theoretical Background
Many authors understand HRM’s current role in the organizations as being strategic. One of the
distinctive features of HRM is that better performance is achieved through the people in the
organization (AlDamoe, Yazam, & Ahmid, 2012). Ulrich, Halbrook, Meder, Stuchlik, and Thorpe
(1991) stated that the competitive panorama is constantly being changed and has been demanding new
models of competitiveness which in turn require organizational capacities that will enable the
companies to better serve their customers and distinguish them from their competitors. These
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organizational capacities come from the redefinition and redistribution of HRM practices, functions
and professionals.
By summarizing what authors such as Guest (1987), Storey (1995), Legge (2006) and
Bohlander and Snell (2009) say, it is possible to observe that people have been assuming a strategic
and relevant role in organizations, and therefore cohesive and coherent theories - aligned to both
planning and organizational strategy - must properly sustain HRM.
In this meaning, HRM policies and practices may vary among organizations and should be
aligned with business strategy (Chênevert & Tremblay, 2009). Boxall and Purcell (2000) add that the
effects of individual HRM practices depend on both the nature of the effects of other HRM practices
and the business strategy. Also, Lim (2012) argues that external business environment has a strong
influence on HRM activities.
From the perspective of Strategic HRM, policies and practices can be mutually reinforced and
create a strong impact on organizational goals (Morris & Snell, 2010). Moreover, HRM policies are
guided by the logic of skills developed in accordance to the requirements of business processes
(Serpell & Ferrada, 2007). Thus, they provide tools to capture and communicate the strategic vision
and objectives of the organization in clear terms that can be more easily understood and requested
(Vakola, Soderquist, & Pratascos, 2007).
Within this context, the development of scales that allow an estimation of the perception of
HRM policies aims to identify to what extent they are applicable to various organizations and aligned
with an organization’s strategy. In addition, a scale can translate how HRM policies are associated
with business strategy, because only then can they be effective (Legge, 2006).
HRM must also not be relegated to a traditional supporting role anymore, but instead must
constitute an essential competence in reaching the organizational and individual objectives and results,
since human resources are valuable and constitute a source of competitive advantage. Uysal (2012)
indeed found strong, positive and significant correlations among the main HRM policies cited in the
literature, such as staffing, training, performance evaluation and compensation. These results are
important for understanding the inter-relationships between HRM practices in order to enhance the
effect HR systems have on employee-based organizational outcomes.
In this context, organizations have turned to the perspective of creating competitive advantage.
Consequently, themes related to the areas of organizational strategy and theory converge, spawning
comprehensive implications for HRM and putting its primary function under discussion. According to
the Resourced Based View by Barney (1991), the creation of competitive advantage depends on
prerequisites that may be closely related to the HRM area, since resources must be valuable and rare to
the organization, may never be imitated or replaced, and the organization must be able to exploit them.
Beauvallet and Houy (2010) support that the key mechanism and decisive variable that would justify
the competitive advantages of companies alleged as being lean enterprises, or the ones practicing a
lean management, are directly related to HRM.
The term organizational policy can be defined as: principles established for leading a company,
a general course of action in which some practices are developed collectively, in a constructive way,
aiming to reach certain objectives (Singar & Ramsden, 1972). HRM policies define the attitude,
expectations and values of the organization concerning how individuals are treated, and still serve as
point of reference for the development of organizational practices and for decisions made by people,
besides resulting in equal treatment among individuals (Armstrong, 2009).
In this study the term HRM policy means an organizationally articulated proposal, with
theoretical and practical constructions within human relations aiming to reach the desired results.
Thereby, HRM policies define theoretical and practical referential built to make possible the reaching
of an organization’s objectives and purposes, operating as thinking and acting guides for the HRM
area.
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Some research results have pointed out positives relationships between HRM policies and
variables like commitment, productivity, profitability and quality, among others (Guest, 1987;
Schneider & Bowen, 1985; Ulrich, Halbrook, Meder, Stuchlik, & Thorpe, 1991). In the meta-analysis
performed, Combs, Liu, Hall, and Ketchen (2006), found that relationships between Human Resources
practices and organizational outcomes are stronger in manufacturing companies than in service
companies.
Studies have also been conducted in cultures other than the American and European ones.
Majumder (2012) verified strong relationships between HRM practices and employee satisfaction in
Bangladeshi private banks, and Kim and Lee (2012) found evidence that HRM policies and practices
improve strategic capabilities and firm performance in management consultant firms in South Korea.
The study by Demo (2010) showed positive and strong relationship between HRM policies and
organizational justice in both private and public Brazilian organizations.
Similarly, other researches have shown that HRM policies and practices favorably affect
organizational performance (Boselie, Dietz, & Boon, 2005; Menezes, Wood, & Geladi, 2010;
Subramony, 2009). Guest and Conway (2011) confirmed the association between both more HRM
practices and higher HR effectiveness and a range of performance outcomes.
Besides, ALDamoe, Yazam and Ahmid (2012) concluded that employee retention is likely to
mediate in the relationship between HRM practices and organizational performance. Employee
perceptions of HRM policies and practices also influence discretionary work effort and co-worker
assistance (Frenkel, Restubog, & Bednall, 2012). On the other hand, the effectiveness and acceptance
of HRM policies are related to organizational values and culture (Stone, Stone-Romero, &
Lukaszewski, 2007).
There is indeed a consensus that HRM practices produce higher organizational performance
when integrated into business strategy (Ezzamel, Lilley, & Willmott, 1996; Guest & Hoque, 1994).
This is also true for small firms. The study conducted by Katou (2012) showed that HRM policies
have a positive effect on organizational performance through employee attitudes (satisfaction,
commitment, motivation) and employee behaviors (absences, turnover, disputes).
In summary, HRM policies assume special connotation in development, appreciation and
retention of talents. They also promote employee commitment and, as a result, goodwill on their part
to act in a flexible and adaptive manner towards excellence in organizations (Legge, 2006). An
entrepreneurial strategy aiming at production and supply of added-value products and services must
concern the development and the implementation of HRM policies resulting in well-qualified
employees (Legge, 2006).
Table 1 summarizes the selected policies as well as constitutive definitions elaborated from the
literature review. The main authors who were reviewed in the development of the theoretical
background for each HRM policy are pointed out.
Table 1
Constitutive Definitions of HRM Policies and Their Theoretical Backgrounds
HRM Policy
Constitutive Definition and Authors Reviewed
Recruitment
and Selection
(RS)
Organizationally articulated proposal, with theoretical and practical constructions, to look for
employees, encourage them to apply, and select them, aiming to harmonize people’s values,
interests, expectations and competences with the characteristics and demands of the position
and the organization.
Authors reviewed: Armstrong (2009); Bohlander and Snell (2009); Dessler (2002); Lievens and
Chapman (2010); Mathis and Jackson (2003).
Continues
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Table 1 (continued)
HRM Policy
Constitutive Definition and Authors Reviewed
Involvement
(I)
Organizationally articulated proposal, with theoretical and practical constructions, to create an
affective bond with its employees, contributing to their well-being at work, in terms of
acknowledgement, relationship, participation and communication.
Authors reviewed: Bohlander and Snell (2009); Dessler (2002); Dietz, Wilkinson and Redman
(2010); Mathis and Jackson (2003); Muckinsky (2004); Sisson (1994); Ulrich et al. (1991);
Siqueira (2008).
Training,
Development
& Education
(TD&E)
Organizationally articulated proposal, with theoretical and practical constructions, to provide for
employees' systematic competence acquisition and to stimulate continuous learning and
knowledge production.
Authors reviewed: Bohlander and Snell (2009); Borges-Andrade, Abbad and Mourão (2006);
Dessler (2002); Dutra (2001); Goldstein (1996); Sisson (1994); Winterton (2007).
Work
Conditions
(WC)
Organizationally articulated proposal, with theoretical and practical constructions, to provide
employees with good work conditions in terms of benefits, health, safety and technology.
Authors reviewed: Bohlander and Snell (2009); Dessler (2002); Loudoun and Johnstone (2010);
Mathis and Jackson (2003); Osborn, Hunt and Schermerhorn (1998); Sisson (1994); Ulrich
(2001).
CompetencyBased
Performance
Appraisal
(CBPA)
Organizationally articulated proposal, with theoretical and practical constructions, to evaluate
employee’s performance and competence, supporting decisions about promotions, career
planning and development.
Authors reviewed: Bohlander and Snell (2009); Dessler (2002); Devanna, Fombrun and Tichy
(1984); Dutra (2001); Latham, Sulsky and Macdonald (2007); Mathis and Jackson (2003).
Compensation Organizationally articulated proposal, with theoretical and practical constructions, to reward
and Rewards employees’ performance and competence via remuneration and incentives.
(CR)
Authors reviewed: Bohlander and Snell (2009); Dessler (2002); Devanna et al. (1984); Dutra
(2001); Gerhart (2010); Hipólito (2001); Sisson (1994).
Methods
Scale development
As set by Pasquali (2008), and Kerlinger and Lee (2008), the development of a scale includes
qualitative analysis. First of all, interviews are required for the definition of critical incidents that will
subsidize the elaboration of the scale items. In a second step, theoretical analysis of the items should
be performed, comprising the semantic analysis and analysis of judges. All participants were chosen
by non-probabilistic convenience sampling.
Regarding the interviews, Bardin (2011) states that the group of participants should be diverse
and representative. For this reason, respondents who answered the interviews work in organizations
from various industries, such as banking, entertainment, consulting, education, telecommunications,
engineering, healthcare, retail, food, beverages, beauty and fitness services. According to Bardin
(2011), repetition in the response patterns indicates sufficiency of sample. Thus, in this step, the initial
sample consisted of 30 participants.
Participants were interviewed and answered basically two questions: In your opinion, what is
considered relevant in terms of HRM policies development for you to feel valued by the organization
you work for? Which HRM practices would help promote your well-being at work as well as your
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commitment to achieve organizational goals? For analysis of the responses, we performed a
categorical thematic content analysis as proposed by Bardin (2011).
As to the theoretical analysis of the items, they were first submitted to semantic analysis so that
their understandability by the population members could be verified and doubts could be resolved. The
analysis focused on a sample of 27 people, different from the 30 person initial sample, who work for
organizations from different activities and industries, such as retail, education, public service, and
banking. This sample was selected from the lowest (operational function) to the highest stratum of the
target population (management function) to ensure the broadest possible understanding of the items.
Then, the subjects were divided into small groups (5 or 6) and asked to explain the items in their own
words to the other groups. If such explanation did not leave any doubt, the item was correctly
understood. Otherwise, it would probably be a problematic item and likely excluded from the scale.
Next, after the semantic analysis, a judges’ analysis was performed in late August of 2010, in
order to check item consistency. Twelve (12) experts HRM (professors, HRM researchers and HRM
managers) judged if the items were or were not referring to the factor (one of the 6 HRM policies) in
question.
Scale validation
After the qualitative steps for the scale development, the questionnaire was ready for
application. The 50 items were randomized in order to avoid bias (Kerlinger & Lee, 2008). A
specialized website, namely Google Docs, was used in order to make it available online. The link was
spread across the researchers' contact lists. Hard copies were also given to colleagues, students and
acquaintances. People current employed, 18 year-old or older and having completed at least a highschool education level were eligible to answer the questionnaire. The data collection returned 851
questionnaires. Using the criteria for sample sizes proposed by leading authors in Statistics (e.g.,
Byrne, 2009; Field, 2009; Hair, Black, Babi, Anderson, & Tatham, 2009; Kline, 2011; Pasquali, 2008;
Tabachnick & Fidell, 2007), that is, between 5 or 10 subjects per item for EFA, or a minimum of 300
individuals, and a minimum of 400 subjects for CFA in case of complex models as ours, we
determined we would need about 600 individuals. Thus, 851 subjects should be considered sufficient
for the purposes of the present study, keeping in mind that data screening normally reduces sample
size.
Data were examined and the assumptions for multivariate analysis were checked, following the
procedures recommended by Myers (1990), Menard (2002), Tabachnick and Fidell (2007) and Hair,
Black, Babi, Anderson, and Tatham (2009). Data was found to be very precise, with no registration
errors or discrepancies in average and standard deviation measures. Also, there wasn’t any case of
multicollinearity or singularity as tolerance values were above 0.2 (Menard, 2002) and variance
inflation factor (VIF) values were less than 5.0 (Myers, 1990). Analyses of outliers, normality and
linearity were conducted as well, and 219 individuals from the original sample (851) were deleted by
using the Mahalanobis distance criterion (D2 = 66.76; p<0.001). The percentage of missing data was
lower than 5%, which were excluded by the Listwise Deletion method (Hair et al., 2009; Tabachnick
& Fidell, 2007). The final sample was thus 632 participants, still enough to run the intended analysis.
As previously mentioned, the sample diversity indicates sampling variability and representativeness.
For the exploratory factor analysis, an initial sample composed of 304 individuals was randomly
selected from the final sample (632). The criterion recommended by Hair et al. (2009), says that for an
adequate sample size, it is necessary to have between 5 and 10 individuals for each instrument item.
To Tabachnick and Fidell (2007), factor analysis validity is compromised with less than 300
individuals. Similarly, Comrey and Lee recommend 300 as a good sample size. HRMPPS had 50
items in its application version, which would require a minimum sample size of 250 people, according
to Hair et al. (2009) criterion. Three hundred and four (304) people composed a sample that attended
to both criteria, allowing the exploratory and confirmatory validations to have different samples.
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As to the psychometric validation, we first performed an Exploratory Factor Analysis (EFA).
The correlation matrix, the matrix determinant and the results of the Kaiser-Meyer-Olkin (KMO)
sampling adequacy test were analyzed regarding factorability. For factor extraction, Principal
Components Analysis (PCA) was used. Once the matrix was considered factorable, the eigenvalues,
percentage of explained variance of each factor, scree plot graphic and parallel analysis were then
examined in order to determine the quantity of factors to be extracted.
After defining the quantity of factors, we ran a Principal Axis Factoring (PAF) analysis using
Promax rotation - since correlation among factors is expected in behavioral phenomena. Conbrach’s
alpha was used to check the consistency, precision or reliability of each factor. The statistic software
used in these analyses was the Statistical Package for the Social Sciences (SPSS), version 18.0.
Next, a new validation of the structure obtained by the exploratory study was made with an
independent sample, denominated the second sample, which was composed of an independent sample
of the remaining 328 individuals. As this structure remained stable, the procedure continued using the
total sample for the model’s confirmatory factor validation. According to Kline (2011), complex
models require larger samples. Hair et al. (2009), state that complex models, with more than 5 factors,
require minimum sample sizes of 400 to 500. To determine which factors’ structure adjusts better to
HRMPPS, its fit was evaluated by using AMOS 18 through the following indexes: NC (normatized
chi-square or chi-square value divided by the model’s degrees of freedom = CMIN/DF), CFI
(Comparative Fit Index) and RMSEA (Root Mean Square Error of Approximation), as recommended
by Kline (2011). The internal consistency or reliability was measured through composite reliability
(also known as Dillon-Goldstein’s rho or Jöreskog’s) as proposed by Chin (1998). Dillon-Goldstein’s
rho is a better reliability measure than Cronbach’s alpha in Structural Equation Modeling, since it is
based on the loadings rather than the correlations observed between the observed variables.
Results
Scale development
For the identification of categories and its indicators, we analyzed the categorical thematic
content as recommended by Bardin (2011). The categories that emerged from content analysis were
consistent with the six main policies cited in the literature, namely recruitment and selection,
involvement, training, development and education, working conditions, competency-based
performance appraisal, and compensation and rewards. These categories were the basis for
confrontation with the literature and for the construction of the scale items. Thirty (30) items were
generated from the interviews.
Thereafter, based on the literature review, another 18 items regarding the recruitment and
selection and competency-based performance appraisal policies were formulated. In addition, 40 items
concerning all policies were developed based on the most recently visited scientific literature. In total,
the first version of the HRMPPS had 88 items.
At the end of the semantic analysis, 20 items were considered unclear, doubtful and repeated by
the analysts. These items were crossed off and HRMPPS retained 68 items. Finally, after the judges’
analysis, 18 items did not reach an application concordance to the factors for 80% of the judges or did
not fit into only one factor and were therefore deleted from the instrument.
At the end, HRMPPS had 50 items in its application version, with a 5-point Likert scale,
varying from I totally disagree to I totally agree. These were the items used for the quantitative
analysis described in the following sections.
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Scale validation
Exploratory factor analysis
The analyses’ results confirmed the matrix high factorability. KMO was 0.917, classified by
Kaiser (1974) as marvelous. The determinant of the correlation matrix was extremely close to zero,
indicating that the number of factors is lower than the number of items.
Through Principal Components Analysis, it was possible to decide how many factors would be
extracted. All the criteria adopted (eigenvalues higher than 1.0, explained variance percentage of each
factor above 3%, scree plot graphic visual analysis and parallel analysis) pointed to the existence of 6
factors. HRMPPS, after 8 iterations, resulted in a multifactorial instrument. Since the minimum
acceptable load was defined as .32 (Pasquali, 2008), 10 items from the application version were not
acceptable and the final version of HRMPPS comprised 40 items, distributed across 6 factors
(subscales), representing HRM policies. The policies are compatible with the theoretical review,
explaining 58% of the construct’s total variance and meeting Hair et al. (2009) criterion that says a
scale needs to have enough factors in order to explain about 60% of the construct variance.
The validity or quality of the items that composed each factor was also analyzed, based on
Pasquali’s (2008) statement that a valid item is the one that well represents the factor; that is, an item
with a good factor loading. Comrey and Lee (1992) classified items with loadings higher or equal .71
as excellent; higher or equal .63 as very good; higher or equal .55 as good; higher or equal .45 as
reasonable; and higher or equal .32 as poor. Thus, as to the items’ quality, 70% of them were classified
as excellent, very good and good.
Concerning the reliability, internal consistency or precision of the factors, Pasquali (2008) states
that values above 0.70 indicate that the scale is reliable, while values above 0.80 indicate good
reliability (Field, 2009). Nunnally and Bernstein (1994, pp. 264-265) say that “in the early stages of
predictive or construct validation research,” it may be “satisfactory” to “have only modest reliability,
e.g., .70”. For other scenarios, Nunnally and Bernstein (1994) go on to state that .80 or even .90 may
be required. Peterson’s (1994) meta-analytical study on alpha showed that reliable alphas have a .77
mean and .79 median.
All the 6 factors showed high reliability, with alpha coefficients higher than .80, following the
threshold recommended by authors such as Nunnally and Bernstein (1994), and Peterson (1994).
Tables 2, 3, 4, 5, 6 and 7 summarize the main information of each factor.
Table 2
Description of the Items in Factor 1 (Recruitment and Selection)
Item Description
Loading
I2
The organization I work for widely disseminates information about both external and internal
recruitment processes.
.75
I8
The organization I work for discloses information to applicants regarding the steps and criteria
of the selection process.
.74
I9
The organization I work for communicates performance results to candidates at the end of the
selection process.
.70
I5
Selection tests of the organization where I work are conducted by trained and impartial people.
.63
I4
The organization I work for has competitive selection processes that attract competent people.
.60
I6
The organization I work for uses various selection instruments (e.g. interviews, tests, etc.).
.50
Note. This factor had a total of six items and reliability of .84 (Cronbach’s α in EFA) and of .82 (Jöreskog’s ϱ in CFA).
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Table 3
Description of the Items in Factor 2 (Involvement)
Item Description
Loading
I12
The organization I work for treats me with respect and attention.
.91
I11
The organization I work for is concerned with my well-being.
.76
I19
In the organization where I work, there is an environment of understanding and confidence
between managers and employees.
.73
I17
The organization I work for recognizes the work I do and the results I achieve (e.g., in oral
compliments, in articles in corporate bulletins, etc.).
.73
I21
The organization I work for favors autonomy in doing tasks and making decisions.
.73
I13
The organization I work for seeks to meet my needs and professional expectations.
.67
I18
In the organization where I work, employees and their managers enjoy constant exchange of
information in order to perform their duties properly.
The organization I work for encourages my participation in decision- making and problemsolving.
.66
I20
In the organization where I work, there is an environment of trust and cooperation among
colleagues.
.62
I16
The organization I work for encourages interaction among its employees (e.g., social
gatherings, social events, sports events, etc.).
.54
I10
The organization I work for follows up on the adaptation of employees to their functions.
.53
I22
In the organization where I work, there is a consistency between discourse and management
practice.
.48
I15
.63
Note. This factor had a total of twelve items and reliability of .93 (Cronbach’s α in EFA) and of .92 (Jöreskog’s ϱ in CFA).
Table 4
Description of the Items in Factor 3 (Training, Development & Education)
Item Description
Loading
I25
I can use knowledge and behaviors learned in training at work.
.58
I23
The organization I work for helps me develop the skills I need for the successful
accomplishment of my duties (e.g., training, conferences, etc.).
.56
I24
The organization I work for invests in my development and education promoting my personal
and professional growth in a broad manner (e.g., full or partial sponsorship of undergraduate
degrees, postgraduate programs, language courses, etc.).
.55
I30
In the organization where I work, training is evaluated by participants.
.54
I28
The organization I work for stimulates learning and application of knowledge.
.49
I29
In the organization where I work, training needs are identified periodically.
.46
Note. This factor had a total of six items and reliability of .88 (Cronbach’s α in EFA) and of .88 (Jöreskog’s ϱ in CFA).
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Table 5
Description of the Items in Factor 4 (Work Conditions)
Item Description
Loading
I34
The organization I work for provides basic benefits (e.g., health care, transportation
assistance, food aid, etc.).
.86
I36
The organization I work for has programs or processes that help employees cope with
incidents and prevent workplace accidents.
.64
I37
The organization I work for is concerned with the safety of their employees by having access
control of people who enter the company building/facilities.
.63
I35
The organization I work for provides additional benefits (e.g., membership in gyms, country
clubs, and other establishments, etc.).
.57
I38
The facilities and physical condition (lighting, ventilation, noise and temperature) of the
organization I work for are ergonomic, comfortable, and appropriate.
.52
I33
The organization I work for is concerned with my health and quality of life.
.46
Note. This factor had a total of six items and reliability of .84 (Cronbach’s α in EFA) and of .80 (Jöreskog’s ϱ in CFA).
Table 6
Description of the Items in Factor 5 (Competency-Based Performance Appraisal)
Item Description
Loading
I43
The organization I work for discusses competency-based performance appraisal criteria and
results with its employees.
.92
I42
In the organization where I work, competency-based performance appraisal provides the basis
for an employee development plan.
.86
I41
In the organization where I work, competency-based performance appraisal is the basis for
decisions about promotions and salary increases.
.71
I44
The organization I work for disseminates competency-based performance appraisal criteria
and results to its employees.
.65
I40
The organization I work for periodically conducts competency-based performance appraisals.
.55
Note. This factor had a total of five items and reliability of .86 (Cronbach’s α in EFA) and of .91 (Jöreskog’s ϱ in CFA).
Table 7
Description of the Items in Factor 6 (Compensation and Rewards)
Item Description
Loading
I47
In the organization where I work, I get incentives such as promotions, commissioned
functions, awards, bonuses, etc.
.66
I50
In the organization where I work, my salary is influenced by my results.
.56
I46
The organization I work for offers me a salary that is compatible with my skills, training, and
education.
.48
I45
The organization I work for remunerates me according to the remuneration offered at either
the public or private marketplace levels.
.45
I49
The organization I work for considers the expectations and suggestions of its employees when
designing a system of employee rewards.
.40
Note. This factor had a total of five items and reliability of .81 (Cronbach’s α in EFA) and of .86 (Jöreskog’s ϱ in CFA).
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Validation of the structure in a different sample
Table 8 shows that the six-factor structure obtained for HRMPS with the sample of 304
employees revealed itself to be stable when applied in an independent sample of 328 employees.
Considering the main psychometric indexes of an instrument, namely the explained variance’s total,
the quantity of items and the precision of the factors measured by Cronbach’s alpha, it is possible to
observe that the results are very similar in both validations, regarding reliability and percentage of
explained variance, but the validation of the sample of 328 ended up with fewer items (37). The 6
factors can be named and interpreted in the same way as in the initial structure, that is, factor 1:
recruitment and selection; factor 2: involvement; factor 3: training, development and education; factor
4: work conditions; factor 5: competency-based performance appraisal; and factor 6: compensation
and rewards.
Table 8
Comparison among the Obtained Factor structures
Items of comparison
Sample of 304
Sample of 328
58%
60%
Number of items / Cronbach’s alpha of factor 1
6 / 0.84
7 / 0.84
Number of items / Cronbach’s alpha of factor 2
12 / 0.93
12 / 0.92
Number of items / Cronbach’s alpha of factor 3
6 / 0.88
6 / 0.90
Number of items / Cronbach’s alpha of factor 4
6 / 0.84
5 / 0.80
Number of items / Cronbach’s alpha of factor 5
5 / 0.86
4 / 0.88
Number of items / Cronbach’s alpha of factor 6
5 / 0.81
3 / 0.82
Percentage of explained variance
Thereby, with the initial factor structure validated, testing the generalization of the scale, we
continued with confirmatory analysis.
Confirmatory factor analysis
To perform the confirmatory factor validation of the new HRMPPS, using structural equations,
we used the sample of 632 employees. We ran a CFA from the factor structure obtained in the
exploratory analysis and chose the maximum likelihood method to estimate all models.
As to dimensionality assessment, Byrne (2009) states that in a confirmatory factor analysis, a
one-factor model should be tested before a multiple-factor model. So, in this study, two measurement
models were tested and compared: Model 1, a one-factor model (see Figure 1), with HRM policies and
practices (HRMPP) as the latent variable and the 40 items representing HR practices as observed
variables; and Model 2, a six-factor model structure obtained in the EFA (see Figure 2).
According to Kline (2011), values which indicate satisfactory adjustment for a model are: for
NC (CMIN/DF), values 2.0 or 3.0 or, at most, up to 5.0; for CFI, values higher than .90 and for
RMSEA, values lower than .06 or up to .08. Model 1 showed 121 parameters, with χ2(767)=5652.11,
p<0.001; df = 767; p<0.001 or NC=7.64; CFI=.66; RMSEA=.103 (confidence interval from .100 to
.105). Therefore, the one-factor model provided for a poor fit.
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Figure 1. Model 1.
On the other hand, the hypothesized six-factor model (Model 2) was tested and confirmed,
providing better indices and a reasonable fit (Figure 2). The final model held 141 parameters, with
χ2(752) = 2376.2,29, p<0.001; df = 752; p<0.001 or NC=3.15; CFI = .89; RMSEA=.07 (confidence
interval from .069 to .075). The factor loadings of the items in the confirmatory validation were
between .55 and .88, showing good- quality items, according to Comrey and Lee (1992).
It is important to emphasize that in the confirmatory analysis the same multifactorial structure of
40 items distributed across 6 factors was kept, in agreement with the reviewed literature and
exploratory validation, such that the interpretation of the factors is the same as displayed in Tables 2 to
7. The results confirmed the HRMPPS’ validation by showing the conceptual suitability of the
structure obtained in the exploratory analysis and reasonable fit. The six-factor model is represented in
Figure 2.
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Figure 2. Model 2.
Taken together, model 2 (six-factor model) was found to outperform model 1 (one-factor
model) for all measures. In addition, chi-square difference was significant (Δχ2(15) = 2556,82,
p<0.001), indicating that Model 2 is indeed better than Model 1. These results suggest that HRM
policies and practices are a multi-dimensional construct that consists of six dimensions and 40 items.
To assess the reliabilities of the six subscales of HRM Policies and Practices, Jöreskog’s rho
was computed for each factor. Chin (1998) recommends that acceptable scores for the Jöreskog’s rho
should be higher than 0.70. The results were very satisfactory, ranging from .80 through .92 for all the
six factors. Specifically: recruitment and selection policy (ϱ=.82), involvement policy (ϱ=.92),
training, development and education policy (ϱ=.88), work conditions policy (ϱ=.80), competencybased performance appraisal policy (ϱ=.91) and compensation and rewards policy (ϱ=.86).
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Construct validity is the degree to which a set of measured items actually reflects the theoretical
latent construct that those items are supposed to measure (Hair et al., 2009). In this study, the
construct validity of the HRMPPS was examined by assessing convergent and discriminant validity.
Convergent validity refers to the degree of agreement between two or more measures of the
same construct. According to Hair et al. (2009), there are several indicators of convergent validity, for
example, examining factor loadings and the factor reliability. As we have seen, the reliability of all six
factors were above ϱ=.70, indicating appropriate convergence (Hair et al., 2009). In addition, all items
of the HRM Policies and Practices measure loaded significantly positive onto their specified factor
(see Figure 2). All 40 items presented loadings over .5 (Hair et al., 2009) for the factors to which they
were assigned; this is indeed a test of convergent validity of the scale. We may thus state that the
scales for these six HRMPP dimensions possessed convergent validity.
Discriminant validity indicates the degree to which measures of conceptually distinct constructs
differ. In this study it was assessed as follows: AFC was performed for a selected pair of
constructs/factors, allowing correlation between the two constructs. The chi-square value of this model
was noted. Then, the AFC was performed again for the same pair of constructs, setting the correlation
between the two constructs equal to 1. The chi-square value of the second model was then noted. We
then calculated the difference between the values of the chi-squares and also the difference of degrees
of freedom for both models. Finally, we analyzed the differences between the chi-square values and
between the degrees of freedom in a chi-square table: statistically significant values indicate the
existence of discriminant validity.
The test was conducted for each pair of constructs, resulting in 15 tests. The results on Table 9
showed that all chi-square differences are significant. There is evidence, then, that the constructs are
different and have discriminant validity.
Table 9
Discriminant Validity
Constructs
Recruitment
and Selection
Involvement
TD&E
Work
Conditions
Involvement
Δχ2(1)=79.5
p<0.001
Training,
Development and
Education
Δχ2(1)=32.34
p<0.001
Δχ2(1)=81.9
p<0.001
Work Conditions
Δχ2(1)=68.7
p<0.001
Δχ2(1)=47.5
p<0.001
Δχ2(1)=25.8
p<0.001
Competency-Based
Performance
Appraisal
Δχ2(1)=36.6
p<0.001
Δχ2(1)=38.9
p<0.001
Δχ2(1)=8.9
p<0.005
Δχ2(1)=42.9
p<0.001
Compensation and
Rewards
Δχ2(1)=79.9
p<0.001
Δχ2(1)=40.6
p<0.001
Δχ2(1)=30.8
p<0.001
Δχ2(1)=31.2
p<0.001
CBPA
Δχ2(1)=28.4
p<0.001
In summary, we found evidence of both convergent and discriminant validity, and thus our
findings lend support to the construct validity of the six-factor model of HRM policies and practices.
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Discussion
Even though the numbers resulting from the previous analysis were very satisfactory, it is also
necessary to analyze HRMPPS’s theoretical consistency with the revised literature, verifying if the
scale’s items are coherent with the theoretical concepts used to support it. Pasquali (2008) and
Kerlinger and Lee (2008) have said that it is not appropriate to hold a factor that has only a
mathematic meaning, for the factor must be relevant in the scientific theoretical context. HRMPPS’s
40 items indeed have theoretical support, greatly corresponding to the literature review of each policy
as discussed below.
About the recruitment and selection policy, Dessler (2002), and Mathis and Jackson (2003) have
suggested the vast disclosure of external and internal recruitment processes, as well as of information
concerning the selective process’ stages, criteria, performance and results as important points. They
are also present in the scale with a strong factor loading, indicating its representativeness in the
construct. The importance of using several selection instruments, defended by authors like Bohlander
and Snell (2009), Dessler (2002), and Mathis and Jackson (2003), is also an aspect of HRMPPS.
And, finally, there are items illustrating the ideas found in Lievens and Chapman (2010), that
professionals responsible for a recruitment and selection process have to be capable and impartial
since they perform a fundamental and determinant role in the process. According to these authors,
companies with a good organizational image become more attractive and have the possibility of
selecting the best-prepared professionals.
Dietz, Wilkinson and Redman (2010) discussed the involvement policy and its practices by
legitimating the employees’ participation in decision-making and problem-solving as well as greater
integration among them. Bohlander and Snell (2009) highlighted the importance of employees’
adaptation to their positions, the existence of an environment of understanding, cooperation and trust
as a way of creating involvement, and the coherence between managerial speech and practice,
practices present in HRMPPS. Muckinsky (2004) and Siqueira (2008) emphasized the respectful and
attentive treatment given to employees, as well as caring for their well-being as fundamental aspects to
involve them. It is important to note that the illustrative items of this point are the ones with the
highest factor loadings of the involvement policy, thus showing the convergent validity of the items
with the concept they represent.
The other scale’s items also have theoretical support. Bohlander and Snell (2009), Dessler
(2002) and Mathis and Jackson (2003) suggested the autonomy in task performance and decisionmaking, as well as the empowerment, as involvement characteristic actions. Additionally, Sisson
(1994) alerted to the importance of continuous recognition and feedback and the constant exchange of
information between employees and managers as important practices of involvement. Finally, Ulrich
et al. (1991) emphasized the necessity of establishing partner relationships with employees by
identifying their needs, values and worries.
The scale’s items referring to the TD&E practices also have theoretical support. BorgesAndrade, Abbad and Mourão (2006) and Goldstein (1996) explained the differences between the
concepts of training, development and education, emphasizing the importance of evaluating training
impact at work. Winterton (2007) highlighted that decisions regarding the necessity of training in an
organization must be identified periodically, being influenced by national and sectorial culture.
Sisson (1994) and Dessler (2002), in turn, discussed the need that organizations have to
especially invest in development and education, given their strategic-long term character. Thus,
modern methods of training, managerial development and career management assume special
connotations. In this context, Dutra (2001) affirmed that TD&E policy plays an important role in the
development of necessary competences to perform functions, illustrating distance education and the
corporate universities’ model as innovative in this process. Finally, Bohlander and Snell (2009)
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indicated that the stimulus for learning and knowledge application must be at the heart of TD&E
policy.
Regarding the items referring to work conditions policy, Loudoun and Johnstone (2010) dealt
with occupational health and work safety, referring to a suitable environment and auspicious
conditions for maintaining the physical, psychic and mental welfare of the individuals, synthesizing
items with high factor loading in the HRMPPS’ validation. Sisson (1994), Osborn, Hunt and
Schermerhorn (1998), Dessler (2002) and Mathis and Jackson (2003) confirmed the importance of
offering basic (the most representative item of the work conditions policy in the HRMPPS’ validation)
and complementary benefits to the employees. Mathis and Jackson (2003) and Ulrich (2001) also
pointed the importance of an ergonomic approaching on the project of functions, environment and
positions.
Items concerning the competency-based performance appraisal policy also have found support
in the reviewed literature. According to Latham, Sulsky and Macdonald (2007), management feedback
concerning employee performance is a crucial point, referring to the goals and results reached. From
this, the authors highlight that it’s important to remember that the criteria’s definition for performance
evaluation can be elaborated together with the employees, stimulating their involvement and
participation in the process. Such an item presented the highest factor loading in this policy.
Aligned to these ideas, Dessler (2002), Mathis and Jackson (2003) and Bohlander and Snell
(2009), defended performance evaluation as the principal method for elaborating an employee
development plan and for decision-making regarding promotion and salary increases. Dutra (2001)
emphasized the need of evaluating, besides performance, employee competences since they might be
indicatives of the potential for future contribution to the organization. Finally, Devanna, Fombrun and
Tichy (1984) certified the need for periodical evaluations and, in this sense, Bohlander and Snell
(2009) recommended a maximum period of 1 year between evaluations, with 6 months as the ideal
period.
Finally, regarding the items representing practices validated in the compensation and rewards
policy, Gerhart (2010) argued that it must be result of careful choices by managers, as it is one of an
organization’s most impactful strategic policies. According to the author, the main questions for
decision making are “how to pay” (offered rewards), considered to be the most strategic in the
decision-making process, and “how much to pay”. Referring to how much to pay, remuneration must
be compatible with both the employee’s education and marketplace levels, as Sisson (1994) and
Bohlander and Snell (2009) defend.
Also, Devanna et al. (1984) understood that a compensation policy must also include rewards
and incentives like prizes and bonuses, and a career plan for everyone, besides remuneration. The
practice of incentives was present in the item with the highest factor loading in the compensation and
rewards policy’s validation. On the same line, Hipólito (2001), Dutra (2001) and Dessler (2002)
highlighted variable remuneration methods, such as prizes, gratification, profit participation and action
options, competency-based promotion and broadbanding (fewer, but broader pay ranges indicating an
easier way to professional promotion) as remuneration tendencies in the new millennium. Finally, the
authors suggested considering employee expectations and suggestions on reward designs in order to
make them as customized as possible, and further, that remuneration must depend on results so that the
effort-reward relation is clear among employees, preventing revenge attitudes.
Table 10 summarizes the 40 items of the HRMPPS, the respective construct and their theoretical
background.
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Table 10
Items of the HRMPPS, Construct and its Theoretical Background
Item
Construct
Theoretical Background
I2. The organization I work for widely disseminates
information about both external and internal
recruitment processes.
Recruitment and Selection Dessler (2002); Mathis and
Jackson (2003)
I8. The organization I work for discloses information
to applicants regarding the steps and criteria of the
selection process.
Recruitment and Selection Dessler (2002); Mathis and
Jackson (2003)
I9.The organization I work for communicates
performance results to candidates at the end of the
selection process.
Recruitment and Selection Dessler (2002); Mathis and
Jackson (2003)
I5. Selection tests of the organization where I work are Recruitment and Selection Lievens and Chapman
conducted by trained and impartial people.
(2010)
I4. The organization I work for has competitive
selection processes that attract competent people.
Recruitment and Selection Lievens and Chapman
(2010)
I6.The organization I work for uses various selection
instruments (e.g. interviews, tests, etc.).
Recruitment and Selection Dessler (2002); Mathis and
Jackson (2003); Bohlander
and Snell (2009)
I12. The organization I work for treats me with respect Involvement
and attention.
Muckinsky (2004);
Siqueira (2008)
I11. The organization I work for is concerned with my Involvement
well-being.
Muckinsky (2004);
Siqueira (2008)
Involvement
I19. In the organization where I work, there is an
environment of understanding and confidence between
managers and employees.
Bohlander and Snell
(2009)
I17. The organization I work for recognizes the work I Involvement
do and the results I achieve (e.g., in oral compliments,
in articles in corporate bulletins, etc.).
Sisson (1994)
I21. The organization I work for favors autonomy in
doing tasks and making decisions.
Involvement
Bohlander and Snell
(2009); Dessler (2002);
Mathis and Jackson (2003)
I13. The organization I work for seeks to meet my
needs and professional expectations.
Involvement
Ulrich et al. (1991)
I18. In the organization where I work, employees and Involvement
their managers enjoy constant exchange of information
in order to perform their duties properly.
Sisson (1994)
Involvement
I15. The organization I work for encourages my
participation in decision- making and problem- solving.
Dietz et al. (2010)
Involvement
I20. In the organization where I work, there is an
environment of trust and cooperation among colleagues.
Bohlander and Snell
(2009)
I16. The organization I work for encourages
interaction among its employees (e.g., social
gatherings, social events, sports events, etc.).
Involvement
Dietz et al. (2010)
I10. The organization I work for follows up on the
adaptation of employees to their functions.
Involvement
Bohlander and Snell
(2009)
Continues
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Table 10 (continued)
Item
Construct
Theoretical Background
I22. In the organization where I work, there is a
consistency between discourse and management
practice.
Involvement
Bohlander and Snell
(2009)
I25. I can use knowledge and behaviors learned in
training at work.
Training, Development &
Education
Borges-Andrade et al.
(2006); Goldstein (1996)
I23. The organization I work for helps me develop the
skills I need for the successful accomplishment of my
duties (e.g., training, conferences, etc.).
Training, Development &
Education
Dutra (2001)
I24. The organization I work for invests in my
Training, Development &
development and education promoting my personal
Education
and professional growth in a broad manner (e.g., full or
partial sponsorship of undergraduate degrees,
postgraduate programs, language courses, etc.).
Sisson (1994); Dessler
(2002)
I30. In the organization where I work, training is
evaluated by participants.
Training, Development &
Education
Goldstein (1996); BorgesAndrade et al. (2006)
I28. The organization I work for stimulates learning
and application of knowledge.
Training, Development &
Education
Bohlander and Snell
(2009)
I29. In the organization where I work, training needs
are identified periodically.
Training, Development &
Education
Winterton (2007)
I34. The organization I work for provides basic
benefits (e.g., health care, transportation assistance,
food aid, etc.).
Work Conditions
Sisson (1994); Osborn et
al. (1998); Dessler (2002);
Mathis and Jackson (2003)
Work Conditions
I36. The organization I work for has programs or
processes that help employees cope with incidents and
prevent workplace accidents.
Loudoun and Johnstone
(2010)
Work Conditions
Loudoun and Johnstone
(2010)
I37. The organization I work for is concerned with the
safety of their employees by having access control of
people who enter the company building/facilities.
Work Conditions
I35. The organization I work for provides additional
benefits (e.g., membership in gyms, country clubs, and
other establishments, etc.).
I38. The facilities and physical condition (lighting,
ventilation, noise and temperature) of the organization
I work for are ergonomic, comfortable, and
appropriate.
Sisson (1994); Osborn et
al. (1998); Dessler (2002);
Mathis and Jackson (2003)
Work Conditions
Ulrich (2001); Mathis and
Jackson (2003)
I33. The organization I work for is concerned with my Work Conditions
health and quality of life.
Loudoun and Johnstone
(2010)
I43. The organization I work for discusses
competency-based performance appraisal criteria and
results with its employees.
Competency-Based
Performance Appraisal
Latham et al. (2007)
I42. In the organization where I work, competencybased performance appraisal provides the basis for an
employee development plan.
Competency-Based
Performance Appraisal
Dessler (2002); Mathis and
Jackson (2003); Bohlander
and Snell (2009)
I41. In the organization where I work, competencybased performance appraisal is the basis for decisions
about promotions and salary increases.
Competency-Based
Performance Appraisal
Dessler (2002); Mathis and
Jackson (2003); Bohlander
and Snell (2009)
Continues
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Table 10 (continued)
Item
Construct
Theoretical Background
I44. The organization I work for disseminates
competency-based performance appraisal criteria and
results to its employees.
Competency-Based
Performance Appraisal
Latham et al. (2007)
I40. The organization I work for periodically conducts Competency-Based
competency-based performance appraisals.
Performance Appraisal
Devanna et al. (1984);
Dutra (2001)
I47. In the organization where I work, I get incentives
such as promotions, commissioned functions, awards,
bonuses, etc.
Compensation and
Rewards
Devanna et al. (1984)
I50. In the organization where I work, my salary is
influenced by my results.
Compensation and
Rewards
Hipólito (2001); Dutra
(2001)
I46. The organization I work for offers me a salary that Compensation and
is compatible with my skills, training, and education.
Rewards
Sisson (1994); Bohlander
and Snell (2009); Gerhart
(2010)
I45. The organization I work for remunerates me
according to the remuneration offered at either the
public or private marketplace levels.
Compensation and
Rewards
Sisson (1994); Bohlander
and Snell (2009); Gerhart
(2010)
I49. The organization I work for considers the
expectations and suggestions of its employees when
designing a system of employee rewards.
Compensation and
Rewards
Dessler (2002)
Thereafter, we might affirm that HRMPPS’s 40 items indeed have theoretical support, greatly
corresponding to the literature reviewed throughout this paper.
Concerning the confirmatory factor analysis, the six-factor structure obtained through the
exploratory factor analysis was confirmed, showing a satisfactory fit with respect to NC and RMSEA
indexes, in spite of presenting an unsatisfactory fit regarding the GFI fit. According to Hair et al.
(2009), researchers should not rely on just one measure of fit, that’s why the authors recommend
researchers to use at least one absolute index (e.g., RMSEA) and one incremental index (e.g., CFI), in
addition to the chi-square value and its degrees of freedom associated or NC.
Although the CFI did not reached the minimum value of 0.90 to be considered satisfactory,
despite being very close (0.89), the RMSEA, in turn, represents how well a better model fits a
population and a sample not used only for estimation, as it is a more suitable index for use when
samples become larger (> 500), as Hair et al. (2009) state. Furthermore, the authors argue that with
samples larger than 250 and complex models (more than 30 variables), as in this research, RMSEA
values up to 0.07 indicate good quality fit and chi-squares values could be significant (p<.05). In other
words, more complex models with larger samples require less strict criteria for evaluation.
Besides, the satisfactory value of NC may indicate that the variables comprising the HRM
policies and practices factors were well specified, attesting to the reliability of the indicators used.
Also, such indicators loaded significantly positive on their specified factor showing convergent
validity. Therefore, we might consider the fit indexes reached by the confirmatory validation
acceptable, bringing indications of validity, and thus further evaluations in other samples are
encouraged.
Ultimately, HRMPPS sought to improve the fullness and reliability of the scales already found
in the literature. The objective of this study was reached and a multifactorial instrument with 40 items,
distributed across 6 factors, explaining around 58% of the construct’s total variance, was produced in
agreement with the performed literature review, with high-reliability and construct validity.
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Academic and Managerial Implications
The present study makes both academic and practical contributions, and suggests some
applications for the research.
First, we explore the strategic nature of HRM, provide a clear conceptualization of the
construct, and then develop a conceptual model with the six policies most cited in the literature,
namely, recruitment and selection; involvement; training, development and education; work
conditions; competency-based performance appraisal; compensation and rewards. Though some of the
ideas expressed in this conceptual model are familiar to HRM specialists, its value is in integrating
these various notions to provide a more comprehensive and holistic picture of HRM policies and
practices.
Second, we provide empirical evidence for the testable scales that are both reliable and valid.
This gives a new theoretical insight into how HRM policies and practices can be managed to provide
superior organizational outcomes. Third, the research contributed to scientific production in HRM,
Organizational Psychology and Management and Organizations field since HRMPPS or its 6 subscales
can be used separately in relational studies. Furthermore, HRMPPS, validated trough exploratory and
confirmatory factor analysis, is a comprehensive and reliable measure considering the importance of
developing profitable HRM policies in the organizations, as well as the gap in literature concerning
measures of perceptions of HRM policies.
As to the managerial implications, HRMPPS covers most of the policies used in the
organizations, constituting an important evaluation instrument for managers to improve their
employee’s well-being at work. There is a consensus in the literature that HRM policies and practices
positively impact well-being at work. Nishii, Lepak and Schneider (2008) assert that HRM practices
should be designed to enhance well-being at work. Similarly, Turner, Huemann and Keegan (2008)
point out that HRM traditionally has two roles: (a) management support, providing the organization
with competent people to perform the work processes; and (b) staff support, looking after their wellbeing. Additionally, the study performed by Baptiste (2008) showed that HRM practices significantly
impact well-being at work.
In addition, there is theoretical and empirical evidence that HRM policies and practices indeed
favorably affect organizational performance (e.g., Boselie et al., 2005; Ezzamel et al., 1996; Guest &
Conaway, 2011; Guest & Hoque, 1994; Katou, 2012; Menezes et al., 2010; Subramony, 2009).
Consequently, since the Human Resource Management Policies and Practices Scale includes the most
widely studied HRM policies and practices, it might support managers decision-making and problemsolving regarding identification of HRM areas where specific improvements are needed in order to
improve organizational performance.
Limitations and Directions for Future Research
This research has limitations and consequently recommendations for future studies. Our
proposal represents an attempt to build and test a conceptual framework of HRM policies and
practices. Then, a first limitation is that the present findings are therefore indicative rather than
conclusive. It would be useful to further assess the generalizability of the HRMPPS to other business
environments such as American, European and Asian countries. Moreover, with more replicative and
creative research, a more comprehensive conceptual framework related to HRM policies and practices
can be developed in the future.
Second, in spite of having a reasonable fit, the six-factor model didn’t present a good
incremental index (CFI), indicating the necessity of new tests and other specifications, to generally
BAR, Rio de Janeiro, v. 9, n. 4, art. 2, pp. 395-420, Oct./Dec. 2012
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G. Demo, E. R. Neiva, I. Nunes, K. Rozzett
416
improve the model fit. The models using structural equations tend to present excellent fit indices in
situations where the measures have a good delimitation and theoretical precision, besides having
validity and reliability confirmed by several samples (Tabachnick & Fidell, 2007). In the case of this
study, the fit indices reached by the confirmatory validation could be considered reasonable
considering the high complexity of the construct.
Another limitation is the cross-sectional nature of the data. The development of a time-series
database and testing in a longitudinal framework of the six-factor HRM policies and practices
structure obtained here is recommended. Nevertheless, it is important to state that, in this research,
samples of employees from several professional activities in organizations from different sectors were
used seeking the best representativeness as possible.
Considering the limitations mentioned, continued refinement of the HRMPPS is recommended
based on further research on new HRM trends and perspectives and changes in business environments,
so that a valid measure of HRM policies and practices can be ensured on an ongoing basis. Therefore,
there could be a need for alteration or even deletion of original items. Additionally, items disclosed
and mentioned as important in literature could be present in future factor analyses, such as: in the work
conditions policy, the organization can offer flexible benefits plan (cafeteria), workplace amenities and
conveniences, such as banks, snack bars, among others, exercise programs in the workplace, and other
leisure and health benefits; prioritizing internal recruitment over external in the recruitment and
selection policy; and the existence of internal communication channels in the involvement policy.
Finally, the findings found here are not intended to be conclusive or limiting but offer a useful
starting point from which further theoretical and empirical research on HRM policies and practices can
be built.
Received 4 November 2011; received in revised form 31 July 2012.
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